Any Recs for Installment Loan

[jaffy83]

Has anyone gone the secured installment loan route (through an app like Self, etc)? Can anyone share any experiences or recommendations?

[justbroke]

Self is a credit builder loan. You don't receive the proceeds until it's paid off. Is that what you're trying to do? Are you attempting to just get a credit builder loan? I think I used self in the past and it was not bad.

[jaffy83]

Ah! Yes. That is what I was referring to. Thank you!

[justbroke]

There are some credit unions (CU) that have these as well. If you go to a CU, you would ask for a "credit builder" installment loan, not a "shared secured" installment loan. Both types will do the job. My major recommendation is that if you choose to get a credit builder loan, please get the longest term possible. If the max is 36 months, get 36 months. I say this because once the loan is paid off, you will actually lose a few points.

[jaffy83]

Thank you for the advice! What I've been seeing is 24 - 36 month terms. Currently researching costs and the like and trying to figure out data points on if the potential credit increase benefit changes based on the amount of the credit builder loan.

[justbroke]

The amount doesn't matter. What it does is give you an "active" installment account. The credit scoring models like to see 1 or 2 installment accounts (that are not mortgage installment accounts). Some people have received a FICO bump of +40 points by adding an installment account.

[jaffy83]

And, I very much forgot that I still have student loans that will start repayment so there's that item as well (giving no deference to any repayment pauses that might occur after August)